Sunshine Coast Council budget brings 5 per cent rate rise

Kim Stephens

Sunshine Coast council has handed down it's first budget since the de-amalgamation of Noosa. Photo: Supplied

Sunshine Coast residents are in for a 5 per cent rate rise next year, following the adoption of the council's first post de-amalgamation budget on Thursday.

But tourist operators are set to cop the biggest financial hit in the $509 million budget, with a 10 per cent rise in the tourism levy, the first in four years.

The levy rise will add an extra $4.7 million to council coffers to support regional events.

The budget, the first since Noosa Shire Council branched out on its own at the beginning of the calendar year, also reveals waste collection services are to rise by 7.5 per cent.

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Mayor Mark Jamieson said ongoing structural changes due to de-amalgamation, combined with rising costs, created a "perfect storm of budget pressure" on council in the coming financial year.

More than 150 jobs have been shed, both through attrition and redundancy, to save $12 million and prevent a bigger rates hike.

A council spokesperson confirmed these were in addition to those jobs transferred to Noosa.

“Council recognises that our residents are still doing it tough and we have done everything we can to keep rates as low as possible," Cr Jamieson said

"The major restructure of council has prevented most of that pain being passed on to ratepayers, including a $12 million reduction in staff costs and a $10 million reduction in other costs.

"To put that in perspective the Queensland Treasury Corporation predicted an $8.5 million deficit for the Sunshine Coast Council following de-amalgamation but with the help of an organisation review which left no stone-unturned, Sunshine Coast Council has turned that around to a $13 million surplus.

“This has been achieved with no reduction in services."

He said the surplus would be used to invest in infrastructure.

Cr Jamieson said inefficiencies caused by de-amalgamation caused $2.5 million in losses, $1.2 million alone in information technology.

Overall, however, council had restructured without a reduction in services, Cr Jamieson said.

“We are keeping the early bird and pensioner discounts and the transport, environment and heritage levies remain the same,” he said.

A $16.2 million allocation for the redevelopment of the Maroochydore city centre is the largest infrastructure investment in the council's $114 million capital works program.

The remainder of the program is largely focused on asset maintenance, with road resurfacing, widening and rehabilitation making up the greatest percentage of the works.

There is also $5.1 million for upgrade works at the Sunshine Coast Airport, which finance chairman Chris Thompson said was a key gateway for the region.

“Each of these projects is a game-changer in its own way but collectively, they are increasing Sunshine Coast’s reputation as a place where great things are happening,” Cr Thompson said.

Cr Jamieson defended the 10 per cent rise in the tourism levy, which he said would affect 10 per cent of the Sunshine Coast population.

He said it would raise $4.7 million in the coming year for tourism and major events.

"That increase comes after no change for four years and during that time this region has secured some massive events which flows through to businesses across the region whether you have a butcher shop, sell push bikes or run a restaurant,” he said.

“It’s estimated every dollar spent on advertising and promotion through the tourism and major events levy generates $15.50 in tourist spending, it’s great value for money."

Budget highlights

$114 million Capital Works Program

More than $20 million for economic development

$23 million for the environment

$36 million to maintain parks and gardens

$15 million for libraries and galleries

$6 million for events and grants

Key infrastructure investment

$16.24 million Maroochydore City Centre

$13.2 million road reseal program – various locations

$6.7 million Evans St, Maroochydore four-laning

$4.8 million road pavement rehabilitation

$5.1 million for upgrade works at the Sunshine Coast Airport

$4.7 million for tourism and major events (raised through a 10 per cent hike in the tourism levy)

5 comments so far

Elephant-in-the-room to Sunshine Coast city councillors: I didn't vote for this de-amalgamation - indeed was never given any opportunity to do so - so why do I have to pay for the consequences to own residential (non-commercial) property here? PATHETIC! You lot are voted out immediately!

Commenter

DrJ

Location

Maroochydore

Date and time

June 27, 2014, 1:47AM

Nice photo of Noosa, which had the good sense to de-amalgamate from the incompetent Sunshine Coast Council.

Commenter

Len

Location

Noosa

Date and time

June 27, 2014, 8:37AM

LNP power brokers, most prominent of whom was LNP candidate and now MP Mal Brough, masterminded the election of these Sunshine Coast Councillors.It has been a debacle. Even LNP Premier Campbell Newman was this week criticising their failure to achieve anything.Now they are going down the big spending, big taxing road.The LNP is well and truly on the nose at all levels on the Coast.Clive Palmer must be rubbing his hands with glee.Having snatched an LNP Federal seat, there's 6 LNP State seats on the menu at the State election.

Commenter

Penny

Location

Coolum

Date and time

June 27, 2014, 9:08AM

The coast love the LNP so a rate rise is the least of there worries.

Commenter

oldfella67

Date and time

June 27, 2014, 11:54AM

Ironic that the website uses Noosa as its' symbol of the Sunshine Coast.Noosa split from the disastous Sunshine Coast Council and managed to keep their rate increase to zero.Whereas the fools running what is left of the Sunshine Coast have failed in almost every way.They have failed to create jobs, protect the environment, foster tourism or flood the region with development.They have even failed to give the world an identifiable image or vision that screams "Sunshine Coast" which means medi outlets, as well as tourism operators and investors still use Noosa to identify the region.They spent $200,000 on a new brand, that looks like it designed by a preschooler with a headache and symbolises nothing.And now they give us the biggest rate rises in a decade, more than anywhere else in SEQ.

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